What do you think about a one bedroom unit investment in Melbourne city with positive returns?
Michelle Wickes
It all depends on what it is?
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I think I know the type of property you’re talking about. These can be difficult to finance and also with industry specific property you must do a thorough due diligence process.
Good Luck…G7
Yes, because I believe if the size of the apartment is less than 50 sqm, then, finance will be very difficult to secure. Nonetheless, check with all finance brokers on this website.
Cheers
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Less than 50 Sq M is not necessarily an issue.
Feel free to give us more details and we can advise accordingly.
Cheers Richard
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http://www.yourstatefinance.comSpecialising in US & IP finance.
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[font=Georgia]I think appartments, especially in CBD are quit good investments. as they almost always have a demand among various markets: students, single professionals, or long term tourists. they offer a good cash flow and are comparingly affortable, while it still depends on the type of property, it’s price and exact location.
I believe it is a very good investment, especially for first time buyers[/font=Georgia]Trotskiy
Hi Michelle,
I agree about checking some of the excellent brokers on this site or anywhere for that matter. I’ve got a one bedroom flat in Glen Iris in Melbourne and to squeeze every penny out of every buck I should sell it and do something else to maximize returns. However if you can look at some ABS stats, etc on the amount of people who will be living on their own within ‘x’ amount of time it will blow you away. Also I’m more a ‘buy and hold’ and I like the area it’s in (I know I shouldn’t view investing emotionally) ie, close to trams, to city, shops, yadah, yadah. So personally if it’s affordable (positive returns) and is close to the city then maybe look at the stat’s of single renters, etc in coming to a decision.
Cheers,
Gatsby.“Sometimes the hardest thing to do in life is often the best thing to do.”
Thanks for your advice everyone. One unit I have found is only 20 Sqr metres (tiny) and is on a lease with a motel group. Cost is $155,000 with rent paying about $200/week.
Does anyone have experience with leases with motel chains?
Cheers,
CoziMichelle Wickes
Hi cozi,
The returns from a motel groups are usually ok, we’ve beeninvolved with a few, the returns may be ok but the I’m not sure how much growth you are expecting with that. If that’s your affodibility then it may be your best option, but if you can afford more than hat then it’s best looking at other options too.
If you decide to go for that one, APerry on this forum is a good operator in Melb and can finance that size units.
Roy H.
L.R.E.A., Dip FS (FP)Guardian Property Specialists (GPS) is a research-focused company that specialises in sourcing and providing residential investment properties Australia wide!
Sounds greta if it is def. posiitve returns. Does it fit into the 11 second rule?
Rachel Allerton
What is the 11 second rule?
Michelle Wickes
As many first time buyers, i understand you financial situation when you want get started in investing in propoerty, but suffering from lack of fiscal resources. my suggestion would be get into partnership with some one else intersted in PI. This is a good way to find support and also getstarted.
Good Luck
Originally posted by cozi:Thanks for your advice everyone. One unit I have found is only 20 Sqr metres (tiny) and is on a lease with a motel group. Cost is $155,000 with rent paying about $200/week.
Does anyone have experience with leases with motel chains?
Cheers,
CoziMichelle Wickes
$155K with $200 pw = $10400 p/a???
Doesn’t sound positive returnish to me!
If you have to pay rates, management fees, body corp/sinking fund fees etc, it will be quite heavily negatively geared.
Perhaps… is there high depreciation that makes a big difference?
I have the feeling that I am missing something? I don’t see the positive returns…[confused2]Celivia
I’m still learning- most likely tht I am missing something. Anyway was figuring that this sort of rent would cover interest only repayments (considering interest rates don’t rise). Just did some checks with the real estate:
body corporate- $1382
water rates- $418
council rates- $399.So definately not as good as I thought.
Thank you!Michelle Wickes
Michele,
Thre is no rush to do anything.
Take your time, researh carefully, learn heaps.
There will always be another opportunityHarley
Just jump in the deep end and hope for the best. That’s how my parents taught me how to swim, after far too many near drownings.
Cheers,
Jacob.‘Stay Happy and you’ll be Perfectly Fine’ – Jack
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